“Some developers engage in abusive practices by submitting tax invoices from agencies to the General Directorate of Internal Taxes (DGII), even though they have not been paid.”.
SANTO DOMINGO - The delay in the payment of commissions on low-cost projects, managed through the Trust Law, has become a concern for some real estate agencies that have been owed large sums for several years, with no immediate payment expected.
Some real estate brokers who sell projects covered by Law 189-11 for the Development of the Mortgage Market and Trusts in the Dominican Republic are concerned about the discontent of some of their associates who prefer to migrate to other areas or resign, demotivated by the situation.
For real estate agents, the commission is sacred; it's the reward for their effort and the only payment they receive. "You can imagine the struggle an agent goes through to sell one of those units. Many times they don't even have a car, and some construction companies make you feel like you're asking for money instead of getting paid for your work," stated Alenny Garabito of TimeHomes.
Reyna Echenique, of Echenique Real Estate, understands that the surge in the trust program in the country demands greater organization and support from the entities involved and the real estate industry itself, because she feels abandoned by the agencies dedicated to this field. In this regard, she requests the support of the AEI (Association of Real Estate Agents and Companies) to intervene and assist them in this endeavor.
“Because we are doing the work and we are not being paid, most real estate agencies in Santo Domingo are migrating to sell tourist products because of the speed with which commissions are paid,” explained the leader of Santo Domingo East.
This difficulty sometimes leads sellers to believe that the agency is unwilling to pay their commission. “What I do in those cases is even share the emails I exchange with the construction companies, which contain the payment requests,” says Garabito, a 21-year veteran of the real estate industry and a pioneer in low-cost housing programs.
Some developers engage in abusive practices, adds the experienced TimeHomes agent, by submitting tax invoices from agencies to the General Directorate of Internal Taxes (DGII) even though they haven't been paid. "And we have to cover the taxes without having been paid, which is an abuse," she maintains.
He understands that the trust companies' reciprocity towards the work done by the agencies is poor, given that it was the brokers who were responsible for publicizing low-cost projects in the country through their promotions. "I think the trust companies should have direct contact with us; it's like returning the favor.".
Echenique elaborates that the issue is worrying, especially for smaller real estate agencies that don't have the volume of business to cope with this situation. "But there's also the issue of agents becoming demotivated and leaving; there's a lot of discontent among colleagues who don't speak out because they're ashamed.".
“We don’t have fixed salaries, what we have is commissions. They don’t see the multiple needs and commitments that an agency has; advertising is expensive to promote projects,” Garabito adds.
The expert in low-cost housing urges builders to prioritize these families in the payment queue and not leave them at the back of the line. She appreciates the law because it has made it easier for many families to own a home, but she is also clear that it was the agents who pushed for it, since they are, after all, the ones who make the real estate business.
